WASHINGTON — The Canadian minister responsible for Canada-U.S. trade, Dominic LeBlanc, confirmed that he will meet with U.S. Trade Representative Jamieson Greer in the coming weeks to discuss the impending review of the Canada-U.S.-Mexico Agreement (CUSMA). LeBlanc shared that he had a phone conversation with Greer following the latter's statement on "Fox Business," which highlighted ongoing challenges in bilateral trade discussions.
Greer pointed out specific barriers that Canada poses for U.S. businesses, notably citing restrictions on the sale of U.S. wine and spirits in Canadian stores. He emphasized that these unresolved issues hinder progress in meaningful trade negotiations. In light of increased tariffs imposed by the Trump administration last year, several Canadian provinces decided to remove U.S. alcoholic beverages from their retail shelves.
Efforts to mend relations had been made earlier by Prime Minister Mark Carney during visits to the White House, but tensions flared again when Trump reacted negatively to an Ontario advertisement quoting former President Ronald Reagan, which criticized tariffs. As a result, negotiations have reached an impasse, though both Ottawa and the Canadian Embassy in Washington have indicated that communication channels with the Trump administration remain open.
The CUSMA, which has largely helped Canada and Mexico mitigate the adverse effects of Trump's tariffs, is now facing a mandatory review this year amidst uncertainty. Trump has floated the possibility of withdrawing from the agreement, and Greer has suggested the U.S. may pursue separate bilateral deals with Canada and Mexico.
During his ongoing trade mission to Mexico, LeBlanc expressed optimism about future discussions with Greer, suggesting that there are still opportunities for fruitful dialogue. He acknowledged that many of the issues referenced by Greer are long-standing concerns that have been addressed in private discussions with the U.S. administration.
Recently, Trump criticized Carney's limited trade arrangements with China regarding electric vehicles and agriculture, while continuing to express frustration over Canada's dairy supply management system. In contrast, the Trump administration has shown a more favorable disposition towards Mexico, which currently faces lower tariffs than Canada.
This atmosphere resembles the early days of CUSMA negotiations, which were initiated to replace the North American Free Trade Agreement (NAFTA) during Trump's first term. In his writings, former trade representative Robert Lighthizer noted that an initial deal was reached between the U.S. and Mexico, with Canada invited to join if it wished, highlighting the flexibility of the U.S. negotiating position.
On this trade mission to Mexico, LeBlanc is accompanied by hundreds of delegates representing various Canadian businesses and sectors. He has engaged in discussions with Mexican President Claudia Sheinbaum, Economy Secretary Marcelo Ebrard, and other governmental officials. This visit follows a strategic partnership announcement made by LeBlanc and Carney in September, emphasizing Canada's efforts to diversify its trade relationships.
LeBlanc acknowledged the differing trade dynamics between Canada and Mexico concerning the U.S. but remained confident that many areas of cooperative interests exist ahead of the CUSMA review. He received reassurances from his Mexican counterpart regarding their commitment to working with Canada to enhance the trilateral relationship during the review process.
In summary, as discussions around the CUSMA review advance, the interplay between Canada, the U.S., and Mexico will be critical in determining the future of trade relations in North America.
